The wage system in the U.S. was developed in accordance with the Department of Labor (DOL) requirements including the Fair Labor Standards Act (FLSA). The wages section of the DOL website states that the FLSA sets the minimum wage and overtime pay standards; and that the Wage and Hour Division (WAH) of DOL is responsible for implementation of those standards. At Absolute Consulting, our goal is to follow the intent and letter of laws regarding wages and compensation.
To help our candidates and employees better understand government wage standards and regulations, we recommend reviewing the FLSA. Below is our attempt to summarize important details of the FLSA, according to DOL Fact Sheet #17A. Regulations state:
- “That most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.”
- That a provision of FLSA, Section 13(a)(1), “provides an exemption from both minimum wage and overtime pay” for several types of employees. The list of these employee types includes executive, administrative, professional, highly compensated employees, and a few others. One common element or “test” for exemption of the minimum wage and overtime pay requirement is that “the employee must be compensated on a salary basis (as defined in the regulations) at a rate not less than $455 per week.”
The above details are offered to candidates and employees as general background information only and not meant to be an official statement of Absolute Consulting or the DOL or FLSA regulations. For additional information, visit the DOL website at www.wagehour.dol.gov or call 1.866.4USWAGE (1.866.487.9243).
References: DOL website and Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA)
